Agrochemical active ingredients market size is forecast to reach $XX billion by 2025, after growing at a CAGR of 5.3% during 2020-2025, owing to the wide usage of agrochemical active ingredients to prevent, destroy, repel and mitigate pests during agricultural activities. The major factors that drive the global agrochemical active ingredients market are high population growth and subsequent increase in the demand for food, soil degradation, limited agricultural land, and an increase in consumer awareness about the benefits of agrochemicals. Also, decline in arable land and diversification in diets supplements are driving the agrochemical active ingredients market growth during the forecast period.
The report: “Agrochemical Active Ingredients Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the agrochemical active ingredients Industry.
By Type: Acephate, Bacillus Thuringiensis, Bifenthrin, Azoxystrobin, Boscalid, Fludioxonil, Glyphosate, Atrazine, 2,4-Dichlorophenoxyacetic acid, Benzyl Adenine, Calcium Chloride, Daminozide, and Others
By Application: Insecticides, Fungicides, Herbicides, Rodenticides, Plant Growth Regulators, and Others
By Geography: North-America, South-America, Europe, Asia Pacific, and RoW
- Asia Pacific dominates the agrochemical active ingredients market, owing to the increasing agricultural investments by the government in the region. In May 2019, NABARD announced an investment of Rs 700 crore (US$ 100 million) venture capital fund for equity investments in agriculture and rural-focused start-ups in India.
- There is an increasing demand for agrochemical antimicrobial active ingredients, as they are being extensively used to destroy or suppress the growth of harmful microorganisms such as bacteria, viruses, or fungi on the crops, which is anticipated to drive the agrochemical active ingredients market substantially during the forecast period.
- Fumigants like methyl bromide and metam sodium can severely injure any tissue they touch. Effects from even minor exposures can include burning and itching of the eyes and skin, respiratory tract irritation as well as coughing and nose bleeds. Fumigants can severely injure the lungs, which may restrain the agrochemical active ingredients market growth.
- Due to the COVID – 19 Pandemic, most of the countries have gone under lockdown, due to which agricultural activities has been negatively affected, which is hampering the agrochemical active ingredients market growth.
By Type – Segment Analysis
The glyphosate segment held the largest share in the agrochemical active ingredients market in 2019, owing to the wide usage of glyphosate to regulate plant growth and ripen agricultural crops. There is an increasing demand for glyphosate for applications in agriculture, forestry, industrial weed control, lawn, garden, and aquatic environments. The sodium salt of glyphosate, an active ingredient in two registered pesticide products, is used as a plant growth regulator for peanuts, soybeans, field corn, pasture, hay, and sugarcane, to modify plant growth and hasten the ripening of fruit. Also, it is applied as a ground spray to peanut fields and as an aerial spray to sugarcane. Moreover, glyphosate residues are expected to be immobile in the soil as it adsorbs strongly to soil and does not move vertically below the six-inch soil layer and it is readily degraded by soil microbes to AMPA, and then degraded to carbon dioxide, which is anticipated to drive glyphosate herbicides in the agrochemical active ingredients market during the forecast period.
By Application – Segment Analysis
The herbicides application held the largest share in the agrochemical active ingredients market in 2019 and is growing at a CAGR of 5.5%, owing to the increasing demand for herbicides such as glyphosate, oxyfluorfen, paraquate, and metribuzin for agricultural and landscape turf management. The uncontrolled weeds are the major cause of low crop productivity. In the recent scenario the increasing urbanization is impacting the agricultural land. The farmers are facing issue in increasing their crop yield in the small plot, due to which the demand for herbicides is increasing. Moreover, herbicide are very cheap, reduces erosion, fuel use, greenhouse gas emissions, nutrient run-off, which is anticipated to further drive the agrochemical active ingredients in the herbicides market during the forecast period.
By Geography – Segment Analysis
Asia Pacific region holds the largest share in the agrochemical active ingredients market in 2019 up to 40%, owing to growth in population, increasing per capita income and rise in demand for new & enhanced agricultural products. According to the International Trade Centre (ITC), in 2019 China held the largest share of 13.4% in world exports of agrochemical active ingredients i.e. worth USD 4,860,166 while only 2.1% of imports were made. Also, India held a share of 3.7% in the world import of agrochemical active ingredients. They have taken various steps to revitalize the agricultural sector such as the pilot program for delivering subsidy directly to farmers, Loan facilitation through Agricultural Insurance, and NABARD. According to the Food and Agriculture Organization of the United Nations, Asia Pacific accounts for more than 90 percent of world rice production and consumption and some developing countries in the Asia Pacific will need to increase their food production by up to 77 percent to feed their people by 2050. Thus, the government initiatives and the increasing demand for agricultural-based products in the Asia Pacific region are anticipated to drive the agrochemical active ingredients market during the forecast period.
Drivers – Agrochemical Active Ingredients Market
- Increasing Governments Initiatives
The governments are spending heavily on initiatives and investments in the field of agriculture as it is an effective way to promote agricultural productivity, and enhancing environmental sustainability. In 2016, according to China’s Ministry of Agriculture, over 1,300 Chinese enterprises had overseas investments in agriculture, forestry, and fisheries valued at $26 billion. The total quantum of private investment in India should increase (with an added investment of Rs. 78,424 crores) from Rs. 61,000 crore in 2015-16 to Rs. 139,424 crore by 2022-23. In India, under Budget 2019-20, Pradhan Mantri Samman Nidhi Yojana was introduced in which a minimum fixed pension of Rs 3000 (US$ 42.92) is to be provided to the eligible small and marginal farmers, on attaining the age of 60 years. In Japan, digital farming technology has been developed to help experienced farmers to use water and fertilizers more efficiently. Thus, due to various initiatives by the government, agricultural production is also increasing in the various regions. And with the increasing crop production the demand for agrochemical active ingredients is also increasing to increase the crop yield, which acts as a driver for the agrochemical active ingredients market.
Challenges – Agrochemical Active Ingredients Market
- Health Hazards from Active Ingredients Based Pesticides
An active ingredient with a high acute toxicity can be lethal even when a very small amount is absorbed. Active ingredients based pesticides are poisons and they can harm more than just the pests at which they are targeted. They are toxic and exposure to them can cause several health hazards. They are known to cause short-term adverse health effects, called acute effects such as stinging eyes, rashes, blisters, blindness, nausea, dizziness, diarrhea, and death. For many active ingredients, the toxic effects from single acute exposure are quite different from those produced by chronic exposure. The small amount of a pesticide that is absorbed from a single exposure is rather insufficient to cause illness, but absorption of the same small amount every day continuously can cause serious chronic illness or even death. Chronic effects of pesticides may not appear for years after exposure, making it difficult to link health impacts to pesticides. These health hazards from active ingredients based pesticides may hinder with the agrochemical active ingredients market growth during the forecast period.
- Covid-19 Impact on The Agrochemical Active Ingredients Market
Due to the covid-19 pandemic, the import and export of agricultural active ingredients have significantly fallen down during the course. There’s been a supply chain disruption in the global and local enterprises which are dealing with manufacturing of agrochemical active ingredients. Also, due to the Covid – 19 Outbreak the production in these sectors are expecting to experience difficulties like untimely deliveries of active ingredients such as Acephate, Bacillus Thuringiensis, Bifenthrin, and more. Also the governments banned export and import of certain commodities such as on March 31, 2020, the Eurasian Economic Commission (EEC), banned number of food products, most notably sunflower seeds and soy beans, which would mostly affect Russia, which is a large exporter of sunflower seeds and soybeans. Due to which the agrochemical active ingredients market is negatively affected.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the agrochemical active ingredients market. In 2019, the market of agrochemical active ingredients has been consolidated by the top five players accounting for xx% of the share. Major players in the agrochemical active ingredients market are IFFCO, American Vanguard Corporation, Haifa Group, Zuari Agro Chemicals Ltd., Gharda Chemicals Limited, Valent USA Corp., United Phosphorus, Ltd., Rotam Cropsciences, Inc., Qatar Fertiliser Co., Ltd., Koch Minerals Co., LLC, Arysta Lifescience Corp., Drexel Chemical Co., Cf Industries, Inc.
- In August 2015, Mitsubishi Corporation (MC) announced its agreement with the Indian Farmers Fertiliser Cooperative Limited (IFFCO) to establish an enterprise locally for the sale and distribution of agrochemicals in India.
- In February 2020, American Vanguard Company (MVAC), launched 10 new products. The announcement is a result of the corporation’s successful acquisitions of four herbicide brands from Corteva Agriscience™ - Classic Herbicide, FirstRate Herbicide, Hornet Herbicide, and Python Herbicide.